Frequently Asked Questions
Housing Foundation
Who is Housing Foundation?
Housing Foundation is a not-for-profit housing charity that builds new homes for first home buyers. Its focus is primarily on helping families buy their first home using its Shared Ownership programme. It also sells a small number of homes on the open market.
What has the Housing Foundation built before?
Housing Foundation has been operating for over 20 years and built or funded more than 1100 homes across Aotearoa, helping hundreds of families achieve their dream of home ownership.
Is Housing Foundation a PHO Provider?
Yes. Housing Foundation is an approved provider for the Government’s Progressive Home Ownership Fund (PHO). It uses the funds to build more homes.
Who else does Housing Foundation work with?
Housing Foundation partners with developers, councils, iwi, banks and other housing organisations.
Purchasing a Home
Who does Housing Foundation sell its Shared Ownership homes to?
Housing Foundation only sells its Shared Ownership homes to first home buyers.
If I’m not a first home buyer, can I buy a Housing Foundation home?
Yes, Housing Foundation sells some homes on the open market.
Can I purchase a Housing Foundation home as an investment to rent out?
No. Investors are not able to buy Housing Foundation homes.
Can I choose the colours in my home?
When timing allows Housing Foundation will involve you in the choice of curtains, floor coverings, kitchen bench and kitchen cupboard colour schemes. The exterior colours have been selected by Housing Foundation’s professional colour consultant.
What appliances will be supplied?
Housing Foundation will supply an under-bench oven, cook top and the range hood. No dishwasher is supplied but a space is left in the kitchen for one.
What are the houses made of?
Typically, Housing Foundation homes are timber framed, clad in weatherboard and/or brick with a colour steel roof.
Are pets allowed?
Most pets are allowed subject to normal Council conditions and the local Residents’ Association rules. Most of Housing Foundation homes are not suitable for larger animals.
Will the homes be connected to fibre broadband?
Yes, our homes are connected to fibre. An internet router, TV connections and TV aerials are provided.
Shared Ownership
Which banks partner with Housing Foundation?
Housing Foundation partners with ASB, Westpac, Kiwibank, SBS and BNZ.
Do I need to have mortgage approval before applying?
No, Housing Foundation helps you to apply for a mortgage with one of its partner banks.
Is there an option to purchase a home with another family member or a friend?
Yes, Housing Foundation offers options that include you being able to buy with family members or friends.
What does Housing Foundation mean by family?
Anyone who is a relative of yours. They could, for example, be your partner, parents, grandparents, brothers, sisters, children, uncles, or aunts.
Can I go through a mortgage advisor?
No. Housing Foundation goes through specific banks who have partnered with us and accepted our Shared Ownership programme. Housing Foundation will introduce you to a bank.
How long does it normally take to own 100% of a Shared Ownership home?
On average, first home buyers take between 5 and 7 years.
Can we choose our home?
Housing Foundation allocates a home based on household size, funding requirements and what you can afford.
How much does it cost to be in the programme?
Housing Foundation charges an annual fee of $1,035 when you are a shared owner – roughly $19.90 per week. When you buy Housing Foundation out & become 100% owner this no longer applies.
Do I have to pay interest charged on Housing Foundation’s share?
No, Housing Foundation does not charge interest.
What is involved in the shared owner annual reviews?
Housing Foundation, together with you, will look at your income, expenses, debt, savings and surplus to see that you are on track to achieving full ownership within the 15 years.
Can I choose which insurance company I get the home insured with?
No. As a shared owner, you will go through Housing Foundation’s nominated insurance company.
Is there a defect and maintenance period?
Yes, Housing Foundation will contact you to discuss any repairs or replacements that may be a defect or require maintenance and then arrange for someone to rectify it.
Are there hidden fees?
No, Housing Foundation only charges an annual management fee ($1,035 including GST p.a.).
Why do I pay an annual management fee?
The annual management fee covers the administrative and operations cost of running the programme.
What up-front costs are involved in purchasing the home?
Upfront costs typically are the Annual Management Fee, rates, house insurance, legal fees, and body corporate fees if the home is an apartment. In some instances, your bank may require you to get a registered valuation of the home at your cost.
What can my deposit be made up of?
The deposit can be made up of your savings, KiwiSaver contribution, and gifted funds and/or koha.
What happens if the purchase price is higher than the value of the home when I buy the home?
The purchase price will never be more than the valuation. Housing Foundation will adjust the sales price to reflect the value of the home when you buy it.
What happens if the purchase price is lower than the value of the home when I buy the home?
The price in the signed sale and purchase agreement is what you’ll pay even if the value of the home has risen since signing.
What if there are build delays or changes in build costs after agreements have been signed. Will I have to pay more?
Absolutely not. Housing Foundation will absorb any increase in build cost. If there are any delays, you will just have to wait a little longer than expected, but Housing Foundation will keep you informed.
Can I change my mortgage to a different bank in the future?
Yes you can, but you will need to discuss this with Housing Foundation who may ask for supporting documentation and reasoning for the request.
When can I begin purchasing additional shares?
Any time you want to - as and when you can afford it.
Can I sell my shared ownership home on the open market?
Yes, but you must first offer it to Housing Foundation. If Housing Foundation declines to buy it, you can sell your home on the open market.
Can I change the house design?
No.